Mumbai: WeWork India, the Indian arm of the New York-based managed office space company WeWork Inc., is expected to launch its highly anticipated initial public offering (IPO) on October 3. The company aims to raise Rs.3,000 crore through the issue, offloading a total of 4.6 crore shares through this pure Offer For Sale (OFS) public issue.
Embassy Buildcon, the company that owns the license for WeWork in India, is looking to sell 3.54 crore shares in the issue, while the rest are being sold by an investor 1 Ariel Way Tenant. The price range for the issue is set at Rs.615-648 per share, with a minimum bid size of 23 shares. 75% of the issue is reserved for Qualified Institutional Buyers (QIBs), while 15% is for Non-Institutional Investors (NIIs) and the rest for retail investors.
The company, majority-owned by Bengaluru-based developer Embassy Group, has developed over 85 million square feet of commercial real estate in India, while also sponsoring the Embassy REIT, India’s first and Asia’s largest Real Estate Investment Trust (REIT) based on leasable area.
In its Red Herring Prospectus (RHP) filed with SEBI, the company has clarified that it isn’t looking to raise fresh capital, but wants to enhance its brand’s visibility and transparency in India’s fast-evolving office space sector.
Currently, the company operates 114k desks across 68 centres in key cities like Delhi-NCR, Bengaluru, Mumbai and Hyderabad, with Grade A properties accounting for 94% of its portfolio.
The company has recently swung back to profit, earning Rs.128 crore last year as against a loss of Rs.135.7 crore in FY24.
With this IPO, WeWork India will join listed peers like Awfis and Indiqube in the $3.98 billion managed office space market, which is seeing a resurgence lately. According to market intelligence firm Mordor Intelligence, the sector is expected to grow at 14.14% CAGR, fuelled by a growth in multinationals setting up GCCs in India.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in stocks includes financial risks, and past performance is not indicative of future results. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
